Avoid reliance on debt, expert urges

British consumers need to avoid reliance on debt as they aim to manage their finances effectively, according to one expert.

Chris Tapp, director of the charity group Credit Action, is convinced that the rises in everyday living costs could see many people using personal loans and credit card debt more often to supplement their spending.

Using credit is only advisable when it is manageable and people need to be very careful that they do not come to rely on borrowing in the long-term, Mr Tapp maintains.

He added that this message is particularly important in the current economic climate because money lenders are becoming increasingly reluctant to offer new deals to their customers.

“It could well be that people who need to find that little bit of extra money to get them to the end of the month or pay the gas bill may revert to credit,” he explained.

“It may be a reasonable option in the short-term, but people have to be very careful.”

Figures released recently by Credit Action show that the scale of the UK’s personal debt management burden increases by around £1 million every five minutes.